Wb special 2015 web

2015

2015

Cancun Convention Edition

IBIA looks ahead

2015 Convention looks at rapidly changing regulatory scene

WORLD BUNKERING SPECIAL EDITION

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David Hughes takes a look at the state of industry as IBIA members gather in Cancun

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or many in the bunkering and shipping industries, the 12 months since the last IBIA Convention have not been happy ones. Nobody present in Hamburg last year will easily forget hearing the shocking news of the collapse of giant supplier OW Bunker, right at the end of what had been a highly successful event.

That corporate collapse left many experienced industry hands unexpectedly looking for new jobs. The general impression is that most were successful, but the dislocation to lives should not be easily dismissed. Nor should the dislocation suffered by many businesses: suppliers caught in complex legal wrangles over ownership and payments for stems already supplied, owners fending off claims to pay for the same stem twice and bargeowners faced with retrieving chartered vessels with no prospect of being paid for their hire.

More recently, the industry has had another shock, with Floridabased Bunkers International filing for Chapter 11 bankruptcy protection at the end of August, citing nearly US$40 million in debts. In this case, though, the chances of a recovery and the company’s successful exit from Chapter 11 protection must be good.

Nevertheless these two cases remind us how tight margins often are, and how close to the edge businesses sometimes find themselves. It is a tough market place and unlikely to get any easier.

So it is encouraging, and perhaps a bit surprising, to read that overall confidence levels in the shipping industry rose in the three months ending August 2015 to their highest level this year. According to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens, the average confidence level expressed by respondents in the markets in which they operate was 5.9 on a scale of 1 (low) to 10 (high). This compares with the 5.3 recorded in May 2015, which equalled the lowest figure recorded in the life of the survey, which was launched in May 2008 with a confidence rating of 6.8.

There were, of course, concerns – mainly about low freight rates and overtonnaging – with continuing doubts also expressed about private equity funding.

While those issues mean hard times for owners, continued investment in shipping and the prospect of reasonable trade growth must be good news for the bunkering industry. Though, as one respondent noted, cheaper fuel has its downside: “The low oil cost means the drive for alternative fuels and cheaper propulsion is not being followed as diligently as one might have expected.” And those shipowners in the offshore sector certainly know all about the downside of cheaper oil.

Not so long ago, the high price of oil was the main factor affecting just about everything to do with shipping. Now, competition, demand trends and finance costs feature as the top three factors cited by respondents to the Moore Stephens survey as those likely to influence performance most significantly over the coming 12 months. Operating costs were in fourth place, ahead of tonnage supply. Only after those factors did the cost of fuel get a mention.

Nevertheless, the lower fuel price has been a help for many shipowners who have had to switch to distillate while operating in emission control areas (ECAs). This special issue of World Bunkering looks at the impact of the ECA in North America, as well as the struggles cruise operators are having in Alaska, where regulation is based on the rather strange concept of opacity. Let’s hope that is one approach to environmental law enforcement that does not catch on.

As well as surveying the Americas scene, we look ahead, both to the prospect of a bunker levy to fund the UN’s Green Fund and at how the shipping industry may develop technologically over the next 15 years.

I hope this special issue will stimulate debate and provide context for many of the discussions that will take place during the conference sessions.

I will be at the conference throughout and hope to meet as many delegates as possible.

David Hughes, Editor

World Bunkering Special Edition 2014 1 2015 1

Editor’s letter

Reasons to be cheerful

2015

Publisher: W H Robinson

1

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Editor: David Hughes editor@mar-media.com

Deputy Editor: Sandra Speares sandra.speares@mar-media.com

Project Director: David Scott david.scott@mar-media.com

Project Consultant: Alex Corboude alex.corboude@mar-media.com

Designer: Justin Ives justindesign@live.co.uk

Published by: Maritime Media Ltd Suite 19, Hurlingham Studios, Ranelagh Gardens, London SW6 3PA, UK Tel: +44 (0) 20 7386 6100 Fax: +44 (0) 20 7381 8890 E-mail: inbox@mar-media.com Website: www.worldbunkering.com On behalf of: IBIA Ltd 4th Floor 50 Liverpool Street London EC2M 4PR UK Tel: +44 (0) 20 3397 3850 Fax: +44 (0) 20 3397 3865 E-mail: ibia@ibia.net Website: www.ibia.net

ISSN 1367-5018

© The International Bunker Industry Association Ltd

IBIA REPORTS Editor’s letter 1 Chairman’s introduction 5 Chief Executive’s report 7 Welcome to Cancun 9 IBIA news 11

SPECIAL FEATURES Setting the scene 14 Special focus: North America 18 Mexico 20 Central America 22 Caribbean 25 South America 27 Innovation 30 Legal news 31 Diary 36 25

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elcome to the 2015 IBIA Convention. There is certainly much for us discuss. Looking at the wider shipping scene, I see the latest Confidence Survey report’s increased optimism in the industry. That is good but we must remember that the container and dry bulk are still under pressure. And the forecasters predict this situation will continue for years. As a result we have some bigger ship owners and operators filing for Chapter 11. I’m afraid to say there will be more to come.

Times are still tough for owners and bunker suppliers alike.

You will not be surprised that I raise my favourite subject, fuel quality. In my introduction to the Autumn issue of World Bunkering I mentioned that I was waiting to see what the fuel quality statistics for the first half of this year would tell us.

We know the answer now. In general nothing much has changed. It is still the same picture. I have even heard of an ore carrier’s bunkers testing positive for FAME. So what is to be done? I can only see one way forward. IMO needs to take this issue seriously. It needs to regulate quality, and that means implementing the latest ISO specification. The buyers take all the costs on their side but currently cannot be sure of obtaining fuel meeting ISO 2055. Let’s get everybody using the latest specs. That won’t solve all our quality problems, but it would go a long way.

As I also mentioned in the Autumn issue, IBIA is on the case at IMO. A correspondence group is developing the work that IBIA has been doing regarding information contained on the Bunker Delivery Note (BDN). We also believe it is crucial to align BS4259 testing standards with Marpol procedures.

But there is much else to discuss here at Cancun. There are a lot of very good topics and speakers. We are set for a very interesting Convention. I would like to see a lot of discussion on some of the difficult challenges facing the industry. There should be plenty of opportunities to do this, both inside the conference hall and, informally outside.

And talking of what is going on outside the conference hall. I hope to see lots of smiling people enjoying the Mexican sun, and the various social events that have been organised for us.

While we will be discussing the issues that affect the global shipping and bunkering sectors, we must remember we are in the Americas and there is quite rightly a special focus on the region. I hope this Convention will be a catalyst for increasing IBIA’s profile throughout the Americas. I for one am very interested in learning more about the opportunities that should emerge following the expansion of the Panama Canal.

I intend to meet and talk to all delegates during our few days in Cancun, and on the subject of meeting IBIA members, it was nice to see a good turn-out for the opening of IBIA’s new head office on 9th September.

Right next to Liverpool street station is, I believe, a fantastic location. So I really hope that our members will drop by and say hello to Chanette, Steve and Peter when they are in London.

London will also be the venue for our next big event, the IBIA dinner which will be back at the Grosvenor House Hotel, Park Lane, London.

Make a note of the date, 8th February, and book early to avoid disappointment.

Keep smiling Jens Maul Jorgensen

World Bunkering Special Edition 2015 5

Chairman’s introduction

Tackling the BIG ISSUES

Excellent international connections

Cancun

New Office

A convention is a long time in the making, and for those of you attending I do hope you will enjoy your time in Cancun.

This year’s convention has been outsourced to Petrospot, the idea being to combine the expertise of IBIA with regard to developing a world challenging programme, with the selling and marketing power of Petrospot.

For those not able to experience this top-level international bunker conference, which includes a day of intensive bunker training combined with stunning networking opportunities. Don’t worry we will have all the presentations on-line for you.

These will include the financial and economic outlook, bunker quality and measurement, new and hybrid fuels, LNG bunkering and new technologies, regional markets, key legal issues and the dangers of cybercrime.

As the only international bunker association you would expect our speakers to be international, and they are. The issues we tackle are global. Also the Convention includes a special Bunker Surgery, where delegates aim questions at the assembled experts on issues they seek answers to. The experts will offer their experience and knowledge to advise on any legal, technical, operational, environmental, commercial or general questions that may be asked.

Recently we announced and held our new office opening in the heart of London. It has to date been a significant success and we have in the first few months of operation had more members come into the office than in the previous years in Southampton. We see this as an additional member benefit.

New benefit for members

Again we aim to continue the “surgery approach” over the coming months, as a benefit to our members. A new work group has been established called the Commercial Workgroup specifically aimed at addressing key questions and supporting our members on the ground. Please send in your queries to IBIA@Ibia.net and we will answer them. Over the last few weeks I have had a number of queries regarding the role of “brokers” we aim to address this matter in our next edition so please let me have your particular problems.

In addition to the Convention a lot has been happening: Regional Forum

IBIA has undertaken a regional forum in Mauritius during October, where there is increasing interest in the east African region in bunker development, with recent announcements from Shell, Total, Aegean and Gulf Petrochem with more to come. IBIA started planning 12 months ago to help support bunker development, providing quality systems and education to the region.

Membership survey

Talking about membership benefits we undertook a mini membership survey regarding enhancing membership benefits The top five topics where members wanted IBIA to provide more were – technical Information; networking; interpretation of standards/legislation; training and regional events.

IBIA at IMO

IBIA has been heavily involved over that last few months both in the Fuel Availability working group and the Fuel Quality group.

The decision-making processes can be frustrating and eventual regulations, particularly environmental ones, often appear to be unsatisfactory compromises with politics overriding industry expertise. In other words IMO is not perfect.

But now there is a real danger that either detailed decisions on CO2 reduction will be taken outside IMO or that the agency will be put under such intense pressure that the effect would be the same.

IBIA strongly supports the principal that IMO is the forum for deciding on issues affecting the shipping industry and is concerned at attacks on this vital UN organisation from certain environmental lobby groups in the run-up to the Paris climate change talks. It is essential that the industry at all levels gets over the messages that shipping is an environmentally responsible, green industry and that IMO is the place where all marine environmental regulation should be made, especially CO2 reduction.

Underlining this need for the industry to be heard, just as this issue was going to print, is a statement attack by the Clean Shipping Coalition (CSC) on the Secretary General of the IMO for a statement explaining what the industry has achieved and intends to do.

Much of what CSC says is simply wrong and needs to be countered.

To take just one point, saying that slow steaming was a response to overcapacity, rather than soaring bunker prices, seems laughable to those of us in the industry. Decision makers in Paris do not know the industry well enough to spot such absurdities.

So IBIA will do all it can to help make the case for IMO during the Paris talks.

World Bunkering Special Edition 2015 7

Chief executives report

Welcome to Cancun and the 2015 IBIA International Annual Convention

This year’s host city for the IBIA Convention is a world-famous tourist resort, and thus a well connected location for a meeting in the Americas

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nusually, this year’s IBIA Convention is not taking place at a major bunkering port. The one, rather tenuous, link Cancún has with shipping is that it hosted the United Nations Climate Change Conference (UNCCC) in November and December 2010. While generally seen as not achieving a great deal, the event did establish the Green Climate Fund, which will provide money to developing nations to combat the effects of climate change. That development could now lead to a decision at this year’s UNCCC in Paris to impose some form of levy on shipping. That is a topic that features in this Special Issue of World Bunkering and will no doubt be a subject for discussion at the convention.

However, what Cancún does have is an excellent location and superb facilities for holding a convention. This year’s event has a packed programme and features several innovations. Under the theme of ‘The Americas: A Continent of Opportunities’, the topclass, two-day conference will examine the most critical bunkering issues of the day and highlight the dynamic bunkering powerhouse that is the Gulf of Mexico.

Hosted at Fiesta Americana Resort Collection’s five-star, allinclusive Live Aqua Cancún, Mexico, the week will include a range of key training courses, seminars and workshops. Meanwhile, the two-day conference programme includes a wide range of important issues for the bunker industry, including: regional bunker quality and quantity concerns; new and hybrid marine fuels; the huge potential for liquefied natural gas (LNG) bunkering and training; regional bunker market overviews; legal issues in bunkering; fighting cybercrime; the impact of environmental regulation on the Americas; and a look at the implications of the expansion of the Panama Canal.

An exciting innovation this year is the Bunker Surgery, where delegates are able to pre-book free, individual, 10-minute slots with some of IBIA’s leading industry experts for confidential oneto-one consultations on any aspect of bunkering – legal, technical,

operational, environmental, commercial or general. This is a unique opportunity that cannot be found anywhere else.

There is a lot of information packed into the convention programme, but there will also be opportunities to relax and network informally, starting with the opening cocktail reception on Tuesday.

This is followed by an evening reception and dinner on Wednesday, where you can discuss the conference so far, concluding with a chance for farewells at the gala reception and dinner on Thursday.

Aside from all this, delegates will also have the opportunity to explore Cancún. Although created from nothing only 40 years ago, the resort city is now world famous for its green-blue sea and beautiful white sandy beaches. It also a gateway to the Mayan world, with several historic sites within the city and others within easy reach.

Wikitravel describes how to get around as follows: “Cancún is very easy to navigate. To the south is the airport, to the north is the city and in between, on the stretch of land between the sea and the Nichupté lagoon, are all the hotels, beaches and bars, referred to as the hotel zone or zona hotelera. Downtown is where most residents live, and it stretches in on the mainland behind the lagoon.”

Generally speaking, Cancún is regarded as safe and largely insulated from the drug-related violence that affects much of the country. As result, it is a favourite with tourists, including, during vacations, many North American students.

Lonely Planet describes Cancún as a “tale of two cities”. It says: “There’s the glitzy hotel zone with its famous white-sand beaches, unabashed party scene and sophisticated seafood restaurants. Then there’s the actual city itself, which gives you a taste of local flavour at, say, a neighbourhood bar or taco joint.”

Delegates will be hard pressed to experience more than a fraction of what Cancún offers in just a few days. But, with the combination of a very comprehensive conference programme and the luxurious facilities of the Live Aqua Cancún, this should a particularly memorable IBIA Convention.

World Bunkering Special Edition 2015 9

Welcome to Cancun

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IBIA News

IBIA back in London

IBIA formally opened the doors to its new office in London, following hot on the heels of the successful new fuels forum

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BIA celebrated its office opening during the highly successful London International Shipping Week with a cocktail party for over 70 invited guests at its 50 Liverpool Street residence.

The consensus was that it was “great to see IBIA back in London located at the heart of the shipping industry”.

IBIA chairman Jens Maul Jørgensen welcomed guests to the opening and promised that this evening would not be about fuel quality, more about quality of service to IBIA’s members. It was an opportunity for members and guests to see its new home.

The move was orchestrated to deliver efficiencies in time and resources and provide a more accessible location for IBIA’s members.

It was hoped that members would take the opportunity to call in and discuss the issues of the day with the secretariat.

The office space also offers state-of-the-art meeting facilities for groups of up to 24, which can be hired by prior arrangement at costeffective rates. It is the first of many new added benefits to members that IBIA intends to develop.

The office opening followed IBIA’s new fuels forum. This addressed the challenges and opportunities of using alternative fuels to distillates to meet emission control area (ECA) requirements and was a great success according to the 68 attendees.

The forum started with IBIA chief executive Peter Hall identifying that this was “chapter one” in the response to emissions abatement.

Although distillate was clearly emerging as the choice option for shipowners and charterers, pricing was clearly a factor in this. Other alternatives were starting to gain ground, with products being released onto the market by a number of key players.

Capt Hall sounded a note of caution that this was only the beginning regarding the mounting pressure on shipping emissions.

Sulphur capping was indeed a challenge and, although the shipping industry was taking this in its stride, bigger hurdles lie ahead with carbon dioxide (CO2), nitrogen oxides (NOx) and particulate matter.

He cautioned that a “tidal wave” of challenges was building. The most important element in overcoming these challenges was the

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Draffin said that onboard segregation is the main issue. There had not been not many adopters so far. This was reflected in the fact that hybrid analysis represents 3% of the total fuels tested.

He also pointed out that distillates (DMA and DMB) now represent 33% of the total fuels tested. Last year, this figure was less than 10%, while historically it was less than 5%.

Summing up, he said that using low-sulphur fuels could be a realistic option for: • Vessels spending a significant percentage – probably more than 70% – of their time in an ECA; • Vessels with regular calls in ports with availability; • Vessels with sufficient tanks to permit segregation of parcels without affecting steaming range; and • Vessels managed by operators with experienced technical support staff.

Draffin also considered the feasibility of widespread use of LNG, asking “Where is the Methane?”. Right now, he said, the answer was the Baltic Sea (Finland, Sweden, Norway, Poland, Germany and Denmark), North Sea (Netherlands, Belgium, France, UK), Northern Mediterranean (Spain, France), US (Atlantic coast, Gulf coast, West coast) and South Korea.

On the horizon was LNG availability in Italy, Malta, Greece, Turkey, Fujairah, Singapore and Japan.

For deepsea, round-the-world trades, LNG supplies would have to be available at many locations, he said. He also noted that LNG bunker barge delivery was in its infancy.

Bio diesel, Draffin noted, was also a possible new fuel for the marine industry. It is widely available in Europe and the US by road tank wagon. However, he said it is still seen as problematic on the basis of cost, storage onboard and the need to modify engines for 100% bio diesel. Bio diesel carries a cost disadvantage too – ashore, its use by road transport was subsidised through taxation, but this was not workable for international shipping as yet.

Hybrid fuels, Draffin concluded, continued to be a minority product, suitable for some vessels and some trades. Methane (stored as LNG) was gaining traction, but uptake for deep sea would be gradual. Bio diesel needed subsidies to succeed, and there were still operational hurdles to cross. “Meanwhile,” he observed, “scrubber uptake is accelerating.”

World Bunkering Special Edition 2015 13

IBIA News

need for accurate data on current emissions from shipping. This was needed now so that the industry can effectively demonstrate the steps taken to reduce emissions.

The forum included a presentation from the Society for Gas as a Marine Fuel (SGMF) on the ground being gained by liquefied natural gas (LNG), particularly in Europe and the US. Argus Media, sponsor of the event, described how Russia and the former Soviet Union was responding to delivering alternative fuels and the price difference between various options. ExxonMobil delivered a detailed presentation about its HDME 50 and AFME 200 products.

Veritas Petroleum Services (VPS) and Intertek ShipCare balanced the debate with practical help for buyers to navigate their way through the options, opportunities and pitfalls.

The forum was rounded off with a summary by IBIA immediate past chairman Nigel Draffin explaining all the options and availability.

Running through the options, Draffin listed: • Gas oil 0.1% Sulphur – “Already in use for some years” • DMB 0.1% S – “Hybrid product, incorporating some vacuum gas oil (VGO)” • RMB 30 0.1% S – “Hybrid product, mainly VGO, elevated density” • RMD 80 0.1% S – “Hybrid product, mainly VGO, elevated pour point” He observed that all of these fuels, other than low-sulphur gas oil, were refinery or supplier-specific. As a result, availability was geographically restricted.

Draffin also covered the testing issues associated with new fuels.

Noting that hybrid fuels can be “difficult to assess”, he asked whether we should “use test methods intended for use with distillates or those intended for residual grades”. Testing laboratories were currently using their own judgment, he said.

Weighing up the pros and cons, Draffin noted that suppliers included ExxonMobil, Shell, BP, Lukoil, Stena, FastOil, Cepsa, SK Energy among others.

He also commented that the new fuels performed well in medium- and slow-speed engines. There had been few problems reported regarding co-mingling with gas oil. As for co-mingling with residual fuel, the advice was: “The maximum ratio was 98:2 and the fuel must be heated, must be purified.”

Setting the scene

Beyond Paris

There are many challenges facing the shipping and bunkering industry, but the issue of cutting greenhouse gas emissions looms ever larger

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his year’s IBIA Convention tackles a whole range of important subjects – from regional bunker quality and quantity concerns, through new and hybrid marine fuels, LNG bunkering and fighting cybercrime to environmental regulation and the Panama Canal expansion.

However, the shipping and bunkering industries could be approaching a watershed moment in December at the United Nations Climate Change Conference (COP21) in Paris. This could be when ground rules are laid that will lead to regulation requiring shipping to pay for CO2 emissions, through what are being euphemistically termed market-based measures (MBM). The industry is coming under a huge amount of pressure from influential campaign groups portraying shipping one of the two remaining ‘big problems’ when tackling global warming. The other is aviation.

One of the biggest risks to the future of global trade is a “regressive shipping industry that refuses to engage in meaningful greenhouse gas (GHG) emissions discussions and commitments and which consequently undergoes a late, steep and harsh transition away from its dependence on fossil fuels”. This was the controversial case argued by UCL Energy Institute’s Dr Tristan Smith, director of the “Shipping in Changing Climates” project, at the Britain and the Sea Conference, held during London International Shipping Week (LISW) in early September.

Smith asserted: “International shipping needs desperately to have a more honest, open and transparent debate about these issues.” He added that shipping also needs a strong evidence base to inform the strategy that will help it negotiate the transition with the minimum of unintended consequences and the maximum stability, profitability and equity. He concluded: “There are potential starring roles there for academia and the shipping and wider media, and the sooner we get started the better.”

In response, Simon Bennett, International Chamber of Shipping (ICS) director of policy and external relations, told World Bunkering: “The word I would use to describe shipping is proactive. As represented

by ICS, and regulated by the International Maritime Organization (IMO), the industry has a clear strategy for reducing CO2 by 50% by 2050. Shipping has cut its total CO2 emissions by more than 10% in five years, improved fuel efficiency across the entire world fleet by around 20% in the past 10, and through the IMO has already agreed a mandatory target whereby all ships built in 10 years’ time – not just those flagged in rich countries – will be 30% more efficient.”

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In fact, in advance of the Paris talks, ICS has launched an initiative to put some key messages to government negotiators, explaining the impressive progress the industry is making to reduce its carbon footprint.

A new ICS factsheet “Delivering CO2 Emission Reductions: Shipping is Part of the Solution” says that the global industry is already delivering carbon neutral growth, having reduced total CO2 emissions by more than 10% since 2007, despite an increase in maritime trade.

CO2 emissions from international shipping now represent just 2.2% of the world’s total CO2 emissions, compared with 2.8% in 2007, according to a UN/IMO greenhouse gas study that reported in 2014.

“These are genuine reductions through fuel efficiency, without the need for complex virtual measures such as carbon offsets,” said ICS secretary-general Peter Hinchliffe.

“With bigger ships, better engines and smarter speed management, the industry is confident of a 50% CO2 reduction by 2050, when the entire world fleet will comprise super-fuel-efficient ships, many using clean fuels such as liquefied natural gas (LNG).”

But in the run-up to the Paris Conference, ICS says the shipping industry recognises that governments expect more.

IMO has already set a mandatory target whereby all ships built from 2025, including those in developing nations, must be 30% more efficient than ships built in the 2000s. This applies to over 95% of the world merchant fleet, under new regulations which came into force worldwide in 2013.

World Bunkering Special Edition 2015

World Bunkering Special Edition 2015 15

Setting the scene

ICS says that IMO is the only place that can ensure that the entire world fleet will continue to deliver further CO2 reductions, regardless of a ship’s flag, while respecting the United Nations Framework Convention on Climate Change (UNFCCC) principle of “common but differentiated responsibilities”.

ICS stresses that the 10% CO2 reduction achieved since 2007 is across the shipping sector globally, not just by ships registered in richer countries, which are the only nations required to make commitments for land-based CO2 reductions under the current Kyoto Protocol on climate change.

“The entire world fleet is about 20% more efficient than in 2005.

With the support of the shipping industry, IMO has already achieved a great deal and is the only forum that can deliver further significant CO2 reductions from international shipping,” said Hinchliffe.

At the ICS conference, also held during LISW, Eric Banel, directorgeneral of French shipowners’ association Armateurs de France, emphasised that, in principle, ICS does not accept that MBMs are necessary.

He described the belief that MBMs will deliver further CO2 reductions as “false”. He said that high fuel costs already motivate shipowners to reduce fuel consumption, and thus CO2 emissions, as much as possible.

However, he also noted that the governments meeting in Paris face the challenge of keeping a promise to provide US$100 billion a year by 2020 for a green fund intended to combat global warming. He said: “They have shipping in their sights.” He repeated the frequently heard plea that the shipping industry should not be seen as a “cash cow”.

On the way towards imposing MBMs, there have been moves at IMO to collect global CO2 data relating to the shipping industry. This is supported by ICS. However, Banel warned that the EU and various campaign groups wanted overly complex metrics. In addition, he said, the EU and some others were calling for operational efficiency indexing of ships. He cautioned: “That would bring serious risk of market distortion.”

The shipping industry is approaching COP21 in a realistic frame of mind. In its factsheet, ICS outlines its strategy if (and it is still an ‘if’) governments decide to impose an MBM. ICS says it would prefer an IMO bunker levy based on fuel consumption alone. It does not want “arbitrary and theoretical metrics that will distort global shipping markets”. Crucially, ICS says it hopes to ensure that “any money shipping must pay is commensurate to its share of total of CO2 emissions”. It stresses: “Shipping should not be expected to pay tens of billions of US dollars a year.”

In late September, shipping industry representatives were encouraged by a European Council decision to push at COP21 for IMO to be entrusted with the regulation of greenhouse gases from international shipping.

Patrick Verhoeven, secretary-general of European Community Shipowners’ Associations (ECSA), said the decision was “a vote of confidence in the international organisation’s ability to deliver”.

He added: “IMO has already delivered important results and is making great efforts, which should, in our opinion, be encouraged, not undermined. Its work guarantees both global coverage and a level playing field, without which, efforts to reduce GHG emissions from ships would be counterproductive. Amendments to MARPOL Annex VI and the adoption of the Energy Efficiency Design Index (EEDI) make international shipping the only industrial sector already covered by mandatory and binding global measures.”

Benoît Loicq, maritime safety and environment director at ECSA, added: “The member states’ position adopted last Friday also ties in with the official EU approach with regard to the reduction of CO2 from international shipping.”

Setting the scene

Technology to transform shipping According to a new report, shipping could look very different in 15 years time

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he momentum and capability for a significant evolution in ship design and operation is building, according to a new UK report, produced by Lloyd’s Register (LR), QinetiQ and the University of Southampton.

The Global Marine Technology Trends (GMTT) 2030 report examines the transformative impact of 18 technologies on ship design, on naval power and on the use of ocean space in 2030. It presents design scenarios for commercial ships in 2030 but also finds that the fastest and most radical effects are likely to be felt in the development of naval ships and systems “where maritime autonomous systems are driving the biggest revolution in maritime security in over a century”. It also says that understanding the world’s oceans is “more essential than ever to secure the future of our planet”.

LR says that, in asking ‘what’s next’, is an aid to business, policymakers and society in trying to understand the future for maritime industries and the oceans. Assessing 56 technologies and then focusing on 18 specific areas of technology, GMTT 2030 builds on the scenarios work in the Global Marine Trends 2030 and Global Marine Fuel Trends 2030 reports to provide insight into the impact and – critically – the timescales of transformative technology.

LR was the lead partner on the commercial shipping parts of the report, and focused on eight technologies that will transform

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commercial shipping. Lloyd’s Register’s marine marketing director, Luis Benito, asserts: “The marine world will be a connected and digital world, bringing closer integration between people, software and hardware in a way that could transform the way we operate. We know technology is changing our world. There is a great deal of overlap between technologies, and how they combine will be important.”

The report identifies two groups of technology drivers – those that will transform the ship design and build space – leading to advancements in shipbuilding, propulsion and powering and the development of smart ships; and the technologies that drive safety, commercial and operational performance – advanced materials, big data analytics, communications, sensors and robotics.

The report presents ‘Technomax’ scenarios for bulk carriers, tankers, containerships and gas carriers. The Technomax scenarios are not concept ships but give an indication of the potential maximum technology uptake relevant to the four ship market sectors.

Tom Boardley, LR’s marine director, commented: “Shipping is likely to evolve quickly now. That evolution is likely to be uneven, but, while 2030 is not far away, we think that shipping is likely to have changed significantly.”

The report can be downloaded at www.lr.org/gmtt2030.

World Bunkering Special Edition 2015

Inmarsat’s Fleet Xpress service, delivered through the company’s Global Xpress and L-band constellations, is the world’s first hybrid Ka/L-band mobile satellite system and forms the basis of the system.

“The wide-ranging project will look at research carried out to date, before exploring the business case for autonomous applications, the safety and security implications of designing and operating remotely operated ships, the legal and regulatory implications and the existence and readiness of a supplier network able to deliver commercially applicable products in the short to medium term,” said Esa Jokioinen, head of the Blue Ocean Team at Rolls-Royce. “The technological workstream,” he continued, “will be led by Rolls-Royce and encompass expertise from across a range of world-leading capabilities within the marine market. We are pleased to have partners such as Inmarsat as part of that team, enabling us to take the first concrete steps towards making remote controlled and autonomous ship applications a reality.”

USA: +1 281 971 5600 ASIA: +65 6322 8215 UK: +44 1325 390180 E-MAIL: marine.services@intertek.com WEB: www.intertek.com/marine

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World Bunkering Special Edition 2015 17

Setting the scene

Meanwhile, global mobile satellite communications services provider Inmarsat says it is joining the Advanced Autonomous Waterborne Applications Initiative (AAWA) recently launched by Rolls-Royce.

The project, funded by Tekes – the Finnish Funding Agency for Innovation – will bring industry partners together with universities, research institutes, shipowners and other stakeholders to explore the economic, social, legal, regulatory and technological factors that need to be addressed in order to make autonomous ships a reality.

Inmarsat’s role in the project is to provide the satellite communications link and platform, which is essential to remote control capability.

Data transfer between ships, as well as between ships and shorebased control centres, is one of the key development areas for remote controlled and autonomous ship research and forms a fundamental element of the AAWA Initiative. The AAWA Initiative will build on existing ship-to-ship and ship-to-shore communication platforms and their effectiveness for supporting remote control functionality.

North America

No end to emissions row

Air violations by cruiseships in Alaska have increased, in spite of the introduction of the 0.1% sulphur limit

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his year may have seen the 0.1% sulphur limit come into effect across North America, but it certainly hasn’t seen an end to wrangling and controversy over air emissions.

This summer saw a blaze of press coverage over a string of air violations by cruiseships visiting Alaska, stretching back to 2010.

Two lines, Royal Caribbean and Norwegian Cruise Line, revealed in filings to the US Securities and Exchange Commission that they were facing possible punitive measures from the Alaska Department of Environmental Conservation (DEC) over infractions, some of which were five years old. DEC’s cruiseship programme lead, Jason Olds, then revealed to an Alaskan radio station that notices of violation had been issued to Carnival, Holland America, Princess, Royal Caribbean, Norwegian, Celebrity and Silversea. The possible violations – each is subject to appeals regarding mitigating circumstances at the time of writing – amount to 48 counts of breaching Alaska’s stack emission opacity standard, involving 18 ships between 2010 and 2014. That final year saw a significant rise, too, and it seems that it was this, principally, that prompted DEC to act.

The cruise industry hit back, pointing out that, with a five-month Alaskan cruise season, the violations amounted to only two a month, and involved less than a third of the ships serving the market. In addition, a few of the cases were self-reported by operators themselves.

Nevertheless, the comparative flood of violation notices clearly throws up questions on both sides, not least of which is why DEC sat on the oldest of them for so long, and what may have been behind the particularly bad year in 2014.

Reading stack emissions from a distance isn’t always easy

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Asked by World Bunkering why the breaches were only being dealt with now, Olds said: “There were initial delays in issuing the 2010 cases. During this time, the Environmental Protection Agency (EPA) initiated a sulphur emission control area for much of North America, which includes southern Alaska east of Kodiak. DEC expected the reduction of sulphur in fuel to have a positive impact on air visible emissions and waited both for an improvement and for the EPA to work with companies on implementation of this standard. With no overall improvement seen in 2014, DEC determined that it needed to continue to move ahead in enforcement activities.”

DEC and the individual lines involved are now in discussions over the exact penalties likely to be imposed and whether there are mitigating circumstances or conflicting data – there are various allowances made under Alaskan statutes – that might see some violations dismissed. He was unwilling to set a likely timescale on the subject, though, saying: “This really depends on settlement discussions and individual responsible parties, any answer would be speculative and approach the confidential/sensitive nature of the settlement process; that said, I think I stated to a separate media outlet that we hoped for six months, but it can take years.”

The industry itself won’t speculate either. World Bunkering spoke to Bud Darr, senior vice-president for technical and regulatory affairs at Cruise Lines International Association (CLIA), and John Binkley, president of CLIA Alaska. While neither of them were willing to guess at the time the process would take, they were able to shed some light on DEC’s timing. “From what we determined, [DEC] was expecting incidents to tail off as 2015 approached, but instead they increased,”

© Mark Byzewski

World Bunkering Special Edition 2015

Binkley said. “But what perplexed our engineers was that there was nothing that had changed in 2014. We haven’t been able to determine a cause for what we saw. It was a record wet summer, but if the atmospheric conditions had any effect, or affected what shore-based monitors were seeing, or if they were simply doing more monitoring that year, we just don’t know.”

The Alaskan emissions standard in question relies on measuring the opacity of stack smoke. If it’s greater than 20% opaque for three minutes at the time of measurement, and the ship isn’t manoeuvring or otherwise under specific engine load conditions, the vessel is in violation. Measurements are carried out from shore by trained ‘smoke readers’, official observers relying on personal observations – based on their experience and skill, of course, and allowing as much as possible for prevailing weather conditions – to determine if the 20% threshold has been breached. While from an enforcement point of view, especially given Alaska’s geography, it offers obvious advantages, it’s an unusual regulatory standard, and there are bound to be question marks over any judgment-based system, however good the personnel are. The ships’ own monitoring systems take the form of both video monitors on stacks on some vessels, and automatic opacity meters taking measurements with far less variation in operating conditions than the human eye.

Asked whether a change to the system – whereby shore observations flagged possible breaches that could then be verified through shipboard data, or having opacity data automatically uploaded to DEC in real time for easy monitoring – might not present a more concrete option, both Binkley and Darr were unequivocal.

“It’s only common sense to me to use technology over a very subjective process of standing across a channel and looking,” said Binkley, who himself is a qualified smoke reader.

Darr agreed. “A visual technique like that gives a lot of potential to misidentify even condensation in the exhaust as something more serious,” he said. “Objective measurements from equipment that is relied upon to train the visual readers in the first place can only be more reliable than the visual observations made by shore monitors. There’s no question in my mind that that would be more sensible.”

“Another problem is that these standards are for single stacks, not multiple engines,” Binkley said. “So you can’t always determine easily if it’s one engine producing the smoke or more. Many of our vessels have, say, four medium-speed engines rather than one heavier one like in a cargo vessel, but you can’t always see that.”

It’s not immediately clear what the shift to low-sulphur fuel may have done for engine smoke opacity – beyond a possible reduction in sulphur aerosols. In the meantime, Carnival and its subsidiaries are protected from the rules until 2017 and Royal Caribbean until 2015 by an EPA exemption allowing them to fit scrubbers and other emission control systems (exemptions modelled closely, according to Darr, on those given to TOTE to switch to liquefied natural gas fuel).

However, at the very least, technology seems to be coming along.

© Robert Pernett

“[The rate of progress] varies by line,” Binkley said, “but Carnival is at the cutting edge. We’ve had a program to bring DEC officials onboard to show them the technology and they seemed to be impressed.”

Elsewhere in North America, the second big story to break over summer was that of Bunkers International, based in Florida, which filed for Chapter 11 bankruptcy protection at the end of August, citing nearly $40 million in debts. The company had revenues of $740 million last year, but, according to its bankruptcy attorney, one of its lenders cut off funding not because of missed payments but over a technical condition for its credit, and as such the company and its three related businesses were forced to file for Chapter 11 to avoid having its bunkering vessels seized.

“The companies were forced to take this action after their primary lender ceased lending and swept all available cash,” Bunkers International said in a statement. It added that it would continue to operate and that “although the Bankruptcy Code does not allow the company to pay for goods and services incurred prior to the filing date, the company will be current on all post-filing obligations”, As well as trading in the US, the company offers supply and brokering services in Singapore, Greece, the UK, and particularly in Colombia, where it was originally founded through a joint venture with CI Vanoil, which was one of the country’s largest suppliers.

There has been no word yet on the company’s financing arrangements or future, and neither Bunkers International nor its attorney could be reached for comment before this magazine went to press Four engines or one? It’s not always easy to say

© Vincent Lock

World Bunkering Special Edition 2015 19

North America

Poor weather conditions make shore observation even harder

Mexico

Increasing optimism

John Rickards takes a look at the Mexican bunkering scene, where major investment could be set to boost the local bunker industry

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ossible past indiscretions and a brighter future are currently painting Mexico’s bunker industry in deeply conflicting colours. Local players will be hoping that it is the latter, rather than the former, that comes to dominate.

In May this year, Mexico’s Federal Economic Competition Commission (COFECE) launched an inquiry into allegations of historical price-fixing, collusion and anti-competitive sales practices, such as tying in the country’s marine diesel market between 5 October 2012 and 6 July 2014. The inquiry was launched following a complaint from an unnamed company about fuel traders’ terms of sale. But COFECE was careful not to imply the complaint had substance.

“This procedure should not be construed as a prejudgment of the responsibility of any economic agent... but as an act of authority aimed at verifying compliance with the regulations on economic competition,” COFECE said in a statement announcing the investigation.

In March, the Mexican Senate passed a new law classifying fuel theft, whether road or marine, as organised crime and introducing a raft of harsh new criminal penalties for fuel “milking”, theft and trafficking. At the time of going to press, COFECE had yet to complete its initial investigations into the marine diesel market.

Rumours of trouble of a more mundane nature have also swirled around one of the country’s most important fuel suppliers, though the company strongly denied them. June saw local trade press reporting that Bunker’s de México, which opened the country’s first independent bunker terminal last year, had been issued with a seizure order for its barges – one of which, the Pacific Golfa II, was reported to be “practically abandoned” in Veracruz owing to a lack of class certification and safety documents – and bank accounts by the Eighth District Court as the result of multiple claims by the company’s fuel suppliers, as well as port authorities, for non-payment of bills.

© Prayitno Photography

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World Bunkering Special Edition 2015

Mexico

© Philo Nordlund

Bunker’s de México, operating principally in Lázaro Cárdenas, Manzanillo, Veracruz and Altamira, strenuously denied the reports when they came out, describing them as “malicious” and “rumours”, despite local press carrying a specific court reference number for the seizure order. World Bunkering attempted to contact the company to determine the current state of its business operations and what the truth of the matter is, but Bunker’s de México did not respond to requests for comment.

In terms of the future, though, there is cause for optimism for Mexico’s bunker suppliers. In April this year, the government announced plans to pour US$5 billion into developing and expanding the country’s 117 ports, as well as a complete restructuring of the way they’re managed. Twenty-five projects – including heavy expansion of Veracruz to triple its capacity to 88 million tonnes of cargo per year by 2024 and two new port facilities to service the Gulf offshore trade – have reportedly been fast-tracked by president Enrique Nieto.

The new structure will see the country’s ports split into Pacific Coast and Gulf Coast designations, with port tariffs equalised as far as possible to cut down on direct competition between neighbouring

© Philo Nordlund

ports. “With increasing investment in new offshore deals, there will be a strong push towards maritime activities in the Gulf, which will strengthen our logistics potential as a crossroads between the major economies of the world,” said Guillermo Ruiz de Teresa, general co-ordinator of Mexican Ports and Merchant Marine.

Commercial cargo volumes have been booming in Mexican ports, despite longstanding complaints over a lack of clear central direction and administration. In addition, a vast tranche of fresh government investment and reorganisation is likely to be broadly welcomed by the nation’s fuel sector. With the region in line to benefit from increased traffic through the wider Panama canal – not to mention a possible rise in transshipment trade off the larger vessels able to transit the Isthmus, as well as the ongoing strength of the Gulf and Caribbean offshore market in the wake of expanded gas exploration – Mexico’s bunker business could be set for a strong future.

That will, of course, depend on the government keeping its promises and the plan living up to its intentions. Nevertheless, it certainly represents cause for optimism after a difficult year of soft prices and unstable demand.

Many of Mexico’s ports could be in line for government investment if huge spending plans go ahead

© Russ Bowling

World Bunkering Special Edition 2015 21

Central America

Tale of two canals

As work on the Panama Canal expansion nears completion, John Rickards surveys the Central American bunker scene

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n Central America, all eyes in the past year have been on two canals. Initial work began on the Nicaragua Grand Canal in late December last year, but ongoing question marks remain over financing for the 278km, US$50 billion project, with no obvious sign of answers coming soon.

Hong Kong-based developer HKND had announced only US$200 million in funding ahead of initial work beginning, and was still talking at the time about launching an initial public offering (IPO) to raise further money. That offering has yet to take place, and the results of the environmental and sociological study into the route, which were handed over to HKND and the Nicaraguan government by UK-based Environmental Resources Management (ERM) in May, have not been made public, nor has a further project analysis by US-based McKinsey & Co. An independent review panel, which was granted access to draft sections of the report, organised by Florida International University’s Southeast Environmental Research Center and College of Law, said in March that the study was rushed and that ERM hadn’t been given enough information about the construction plan, something ERM hasn’t denied.

And while actual construction work was due to begin in the second half of this year, and has already drawn protests, local reports from this summer suggest that other than some dirt road repairs, there had been no sign of imminent heavy construction along the route and no land purchases had yet been made. Despite denials

© Laoska Guadamuz “One day, son, this will be full of ships.” Doubts about the development of the Nicaragua Grand Canal rumble on 22

from the administration, most speculation continues to point to the Chinese government or state-run companies as being the most likely sources of the investment needed to make the vast project come to fruition. With nothing concrete put in place as yet, opposition within the country itself, and the whole enterprise cloaked in uncertainty, it would seem that the announced 2020 opening date is, at the very least, optimistic, and, at worst, that the project’s whole future has to remain doubtful.

No such doubts plague Panama, of course. The widening project to increase maximum ship size to 13,000 teu is well on course to be complete in 2016 and, with existing traffic levels already holding strong, the country’s bunker industry is gearing up for a bumper future. Fuel sales through the first seven months of the year (the last figures available at the time of going to press) were up nearly 30% on the same period for 2014, according to Panama Maritime Authority figures. The country’s bunker suppliers shifted 2.15 million tonnes of fuel, 1.66 million tonnes of that on the Pacific side of the Isthmus. Marine diesel oil (MDO) sales doubled to 177,872 tonnes on the Pacific coast and trebled to 74,976 tonnes on the Atlantic as the US sulphur limit came into effect. Marine gas oil (MGO) sales on the Pacific also rose 51% to 10,937 tonnes, but sales were up across the board. Demand was so fierce that this summer saw the Panama Canal Authority (ACP) temporarily authorise bunkering in its Atlantic Outer Anchorage, despite the generally rougher sea conditions that

© Jorge Mejía Peralta Protest has already dogged the development of the Nicaragua Grand Canal before the ground has even been broken World Bunkering Special Edition 2015

“This is where we want to provide a personalised service for each customer.”

Also taking the long view is Gas Natural Atlántico, the Panamanian subsidiary of US power group AES. This September, the company announced plans to build a 170,000m3 liquefied natural gas (LNG) tank storage and regasification plant – Panama’s first – on the country’s Atlantic coast. The plant will supply LNG for bunkering, in line with similar facilities run by other AES subsidiaries in Dominica and Louisiana, as well as for a new gas power plant. The combined project, which is estimated to cost between US$800 million and US$900 million, is due to see construction work start next year. The projected completion date is 2018.

AES president Andrés Gluski said: “Building a state-of-the-art LNG regasification terminal near the entrance of the enlarged Panama Canal will enable Panama to become an energy hub for Central America and the Caribbean, by supplying lower-cost, reliable and sustainable fuel, which will benefit many sectors, including electricity generation, transportation and ship bunkering.”

The planned facility ties into the aspirations voiced by Panama’s energy secretary in May. Victor Carlos Urrutia Guardia told an offshore conference in Houston that he wanted Panama to “join the future” and establish a strong storage and distribution infrastructure to tie together the widening of the canal and the launch of LNG exports from the southern coast of the US. More than 50 US companies have applied for LNG export licences, and a significant proportion of traffic from US Gulf Coast ports already passes through the canal.

In June, the US Trade and Development Agency (USTDA) awarded the canal authority a grant to support the planning of an LNG import terminal and infrastructure projects with precisely that aim – possibly including the new AES facility, though no mention of USTDA was made at the time of the announcement.

“As we near the completion of the Panama Canal expansion, we are eager to explore new segments, such as LNG, which are now possible given our enhanced capacity to accommodate longer and wider ships. This grant by USTDA will build on plans and projects related to LNG that are already ongoing and will [give] us the ability to evaluate additional market opportunities and client services for the benefit of the US-Panama energy trade,” said ACP administrator Jorge Quijano.

While its existing fuel market seems to be holding strong, for the time being at least, the big force in the Central American shipping and bunker scene is clearly keeping one eye on the horizon too.

© Vince Smith

© Patrick Denker Even with traffic set to soar next year after the widening of the Panama Canal has been completed, Panama is taking a long-term view and keeping an eye on the horizon World Bunkering Special Edition 2015 23

Central America

normally bar refuelling operations there. As a result, this was on a case-by-case basis, with bunker barges required to meet a stringent set of safety and environmental system requirements. Last year, Panama’s suppliers sold US$892 million worth of fuel. If the market can sustain the growth seen in the first half of 2015, that value could be beaten.

In part, though, the sales boost has been attributed to lower prices in Panama compared with ports elsewhere in the region, and one reason for that has been an increase of smuggled subsidised fuel oil out of Venezuela. Three ships were detained on suspicion of fuel smuggling in Venezuela in September this year, with Panama thought to be their destination. The influx of cheap smuggled fuel, or smuggled fuel blended with regularly purchased intermediate fuel oil (IFO), has caused legitimate traders to push down their own prices just to remain competitive with those either operating without a licence or working in the black market as well. The local authorities have been slow in clamping down on the contraband trade so far, and traders in Panama will hope the situation normalises again before the current boom ends, which many analysts predict could come when the widened canal opens.

One bunker supplier taking the long view is Dubai-based Endofa.

Last year, the company successfully launched local supply operations by truck and barge in Honduras, and this summer saw it establish a Panamanian subsidiary headed by Christoffer Pedersen, who previously worked for OW Bunker in the region.

Asked by World Bunkering how important it was for the company to establish itself before the canal improvements change the local market, Pedersen said: “Endofa has entered the Panamanian market more as part of a strategic plan for the whole Latin American market.

With an operation in Honduras and more focus on Latin America, we believe it is important [to have a] local presence, where we can reach out to local contacts and stretch those relationships to our customers. The widening of the Panama Canal will bring more focus to Panama, and it is good to have a foot in the door in time for this.

“Our business model in Endofa builds on niche markets and niche customers, this is what we will continue to build on for Latin America, where we want to bring special market opportunities to our special customers,” he went on.

“What we are trying to bring to the market is a trustworthy and reliable service for our customers. In this part of the world, it is important to have a good handle on local supply and operation in order to optimise any operation.

Caribbean

Mixed prospects

John Rickards finds that while some projects appear to be flagging, others are buoyed with optimism

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fter a year of promising new port developments and expansions of the region’s bunker offerings, especially for the booming cruise trade, the slump in oil prices and the effects of the slide on producer nations across the Caribbean have seen projects cancelled or scaled back, with rumblings of discontent across parts of the region. However, others are seeing fresh cause for optimism, both in the rise of alternative fuels following the introduction of the North American sulphur emission control area (ECA) and in the thawing of US-Cuban relations, opening up traffic across the northern Caribbean.

One of the more surprising decisions, given its proponents’ past statements about the project, is the apparent shelving earlier this year of plans for a new bunkering and fuel storage facility in the Cayman Islands to replace the current oil terminal in George Town.

Planning minister Kurt Tibbetts told the islands’ legislative assembly last year that the existing storage terminal was no longer fit for purpose and that its delivery pipelines were “reaching the end of their useful life”. He also pointed to the inability to grow the site, given its heavily built-up surroundings, and said that a new terminal would not only see domestic oil prices fall but also support the islands’ bid to attract more cruise traffic by offering bunkering and a better fuel infrastructure.

However, after signing an agreement with Texas-based Navasota Clean Energy to evaluate sites on the East End of Grand Cayman and explore pipeline connection routes and other infrastructure requirements ahead of forming concrete plans for the replacement terminal, the idea appears to have been quietly dropped, with local media saying that the government was unable to say when the project might go ahead. World Bunkering approached both Tibbetts and Navasota Clean Energy, now trading as simply Navasota Energy, to ask whether the terminal would eventually go ahead, and what its delay or cancellation might mean for the existing terminal, given how publicly it was declared unfit to continue in operation. Neither offered any comment on the subject.

Also pulling back is US-based Buckeye Partners, which is reported to be exiting the Caribbean fuel oil market. The company had been supplying local bunker traders from its terminals in the Bahamas, Yabucoa in Puerto Rico, and the former Hess terminal in St Lucia through its merchant services arm since 2012. However, the weak market, coupled with an apparent lack of arbitrage opportunities, and the shift in demand

across the region for low-sulphur fuel for US waters has seen the division continue to return an operating loss. At the time of going to press, the company is reported to be completing its remaining supply obligations ahead of shuttering its Caribbean bunker arm totally.

Another company facing trouble in its bunker business is Trinidad and Tobago’s state-owned oil firm, Petrotrin. This summer saw union leaders claiming the company had sacked workers because of their opposition to longstanding plans to privatise its bunker arm.

Petrotrin had initially threatened action against 40 workers late last year after they refused to berth tankers carrying West African crude over Ebola fears, despite the tankers being declared free from infection. After a lengthy review, three employees were fired.

“After carefully reviewing the facts, the company is now in the process of dispensing appropriate disciplinary sanctions,” Petrotrin said in a statement. “Three employees have been terminated. Of the remaining 37, other sanctions will follow in the form of suspensions and warning letters.”

Antigua should see a greatly expanded bunker market if development plans go ahead

© Robert Cutts

Aruba’s Oranjestad is one of a string of ports where Curoil has been pushing its bunker services © Phil Comeau

World Bunkering Special Edition 2015 25

Caribbean

However, Oilfield Workers’ Trade Union president Ancel Roget said that the case was “frivolous” and that the disciplined workers were being targeted because they had voiced their opposition to the company’s plans to privatise its bunkering operations.

“We are not so foolish as to not make the link,” he told local press, threatening industrial action if the sacked workers were not reinstated immediately. “It is a diversionary tactic to go through with this major bunkering deal.”

All is not doom and gloom across the region, though. AES Dominicana, local subsidiary of US power generation conglomerate AES, announced this summer that it is planning to launch liquefied natural gas (LNG) bunkering services in the Dominican Republic through its AES Andres facility in Santo Domingo. The project, headed by George Nemeth, will see the terminal converted to reload LNG bunker tankers ranging from 10,000m3 to 60,000m3.

Nemeth said: “The combination of AES Dominicana’s ability to procure competitively priced LNG and the capability to deliver small loads of LNG allow for cost-effective gas conversion solutions for smaller-load fuel consumers in the region. The facility is also located along many shipping routes ideally positioned to provide LNG bunkering services to vessel owners and operators who are increasingly drawn to LNG as a propulsion fuel.”

AES Dominicana president Edwin de los Santos added: “AES Dominicana aims to become a regional transshipment hub in order to provide cost-effective energy solutions to fuel consumers in the Caribbean, Central and South America.”

The revamped LNG terminal and its associated infrastructure improvements is expected to be operating and offering LNG bunker reloads by the third quarter of next year.

Another state aiming to boost its bunker offerings, this time in conventional fuels, is Antigua and Barbuda. The twin islands’ authorities announced plans in the spring to buy an unnamed bunker trader and upgrade existing West Indies Oil Company (WIOC) storage tanks in St John’s Harbour to support bunkering. The harbour is to be redeveloped to support deep-water vessels, similar to those that WIOC currently supplies bunkers to in Antigua’s Deep Water Harbour. The move, the government said, was intended to draw interest from cruiselines. WIOC was originally owned by the Antiguan government.

Trinidad, despite Petrotrin’s difficulties, is also in line for fresh supply infrastructure. Trinidad Dry Dock Company (TDDC), as part of its massive Sullivan dry dock project in Port of Spain, will be including bunkering facilities in the construction of the marine industrial park section of the complex. The ship repair yard will be one of the world’s largest, with five graving docks able to accommodate vessels between 20,000 dwt and 250,000 dwt alongside the industrial park and a residential and commercial centre. The development is being funded in part by state-run InvesTT Trinidad and Tobago. It is one of two dry docks TDDC has planned, the other one being in Guyana.

Further west, Curaçao’s state-owned energy company, Curoil, has seen a surge in annual profits on the back of the firm’s bunker service expansion in the past couple of years and booming demand for lowsulphur fuel. The company launched inshore bunker sales in Aruba at the start of 2014 after a successful offshore launch late in 2013 and has continued to grow its services since. Its barge operations now cover Aruba, Bonaire and Curaçao. Profits are up 60% to US$22.35 million, and the company has committed to further expansion, with Curoil reporting growing demand from offshore firms and international exploration and supply companies.

Jamaican bunker supplier West Indies Petroleum is also looking to expand, this time in terms of its service profile. This summer the company signed an exclusive distribution deal with Castrol Marine Lubricants, making it Castrol’s sole distributor across Jamaica. It now holds the rights to supply all grades of lubricant oil at Kingston, Montego Bay, Ocho Rios, Port Rhoades and Port Esquivel.

The deal comes as Jamaica looks likely to capitalise on greatly improved US-Cuban relations. The slow process of normalising diplomatic standing and trade between the US and Cuba began in December last year, with an agreement seeing travel restrictions lightened, financial relations opened up, and Cuba taken off the State Sponsors of Terrorism list in the US for the first time since the end of the Cold War. Jamaica would be in a prime bunkering location should normalisation continue and Cuba open up fully to Caribbean cruise operators. Aegean Marine Petroleum Network has been one supplier highlighted as potentially benefiting from the easing of trade restrictions, with at least one US investor website saying that the company’s strong relations with cruise operators and the location of its bunkering base in Jamaica would give it clear advantages.

Jamaican bunkering ports like Ocho Rios could benefit greatly from improved US-Cuban relations

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© Callie Reed

World Bunkering Special Edition 2015

As the old adage goes, you can never have too much storage and, as John Rickards reports, that has certainly been the case across much of South America over the past year

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n Chile this summer, the government launched a project to build a bunker storage and supply facility in Puerto Williams in the very far south of the country. The planned development, which is undergoing an environmental impact assessment at the time of going to press, will see four tanks of 160,000 litres (l) total capacity built to hold marine diesel oil (MDO) and diesel, with building work due to start in June next year. Puerto Williams on the Beagle Channel is the administrative centre for the Chilean Antarctic and Cape Horn province and one of the world’s most southerly settlements. The port serves the Chilean navy and Antarctic-bound ships, but also a growing cruise market.

It’s the other end of the continent that’s seen perhaps the most changes in oil and ship fuel infrastructure, as well as shifts in its supplier base. Shortly before going to press, Colombia’s state-owned Ecopetrol announced plans to add two new 420,000-barrel tanks for storing fuel oil at the port of Coveñas on the Caribbean coast by the end of the year. The tanks will replace the two much smaller 110,000-barrel versions currently serving the port. Coveñas is subject to a $93 million upgrade programme, which will see its total storage capacity to 1.24 million barrels on the back of a booming export market for fuel oil.

Late last year, the much larger development at Puerto Bahía, built to ease some of the burden from Cartagena and Coveñas by

a subsidiary of Pacific Exploration and Production (formerly Pacific Rubiales Energy), saw planned bunkering facilities dropped so the new port could focus instead on storage and export of oil and fuel oil products. Operations at the terminal, which is funded in part by the World Bank’s International Financial Corporation, and supplied by Ecopetrol’s Barrancabermeja refinery, will be managed by Oiltanking International, a company with 40 years’ experience in oil and products storage and handling. The US$585 million port finally opened officially at the end of August this year, nearly 18 months behind its original schedule, after completing a series of operational tests and ironing out remaining issues in its automated liquid bulk terminal handling processes. It also saw the first ship call by an Aframax vessel in the Bay of Cartagena, thanks to deeper dredging work on the Bocachica Channel. The port can take tankers of up to Suezmax size, again a first for the country.

Speaking to World Bunkering, Juan Ricardo, president of Noero Sociedad Portuaria Puerto Bahía, said that the launch had gone smoothly and the port had already seen significant cargo levels during its testing. “During that pre-operational phase, four tanker ships arrived at Puerto Bahía. Three of them imported 669,000 barrels of NAFTA, while the other exported 148,000 barrels of crude oil,” he said. “The port also received 1,800 tank trucks coming from the main oil production centres in Colombia, and dispatched 62 river

World Bunkering Special Edition 2015 27

South America

Building Capacity

Puerto Bahía is Colombia’s newest fuel and energy port

core business, and our goal is to reinforce Cartagena as the most important port city of the country, providing specialised services.”

Cartagena doesn’t just have the support of a major new port development; it has also added to its roster of bunker suppliers in the past few months. Newly founded PetroBunkers, based in Cartagena, began supply operations by barge in Cartagena, Barranquilla and Santa Marta at the start of 2015, offering regular intermediate fuel oil (IFO) as well as-compliant low-sulphur fuels compliant with emission control areas (ECAs) for ships heading north.

Early this year, the joint-venture supplier established in 2014 between troubled US group Bunkers International (see our North American feature) and local group CI Vanoil added a low-sulphur fuel to its offerings in Colombia, produced at its own 8,000-barrelper-day refinery in Cartagena. The ECA-compliant fuel is delivered by barge in Cartagena and truck at other Colombian ports.

On launching the new offering, Bunkers International chairman John Canal said: “We are very excited about this new product and its launch into the strategically important Caribbean and South American region, as a vast majority of the vessels calling at Cartagena transit into North American ports or within the 224 mile boundary of the ECA. This product addresses the needs of shipowners who must meet the new ECA specification but would prefer not to use marine gas oil.”

Given the financial problems Bunkers International has faced in the US, World Bunkering tried to contact both the company and its joint venture partner CI Vanoil to determine whether its operations in Colombia had been affected, and what the venture’s eventual fate might be if the company was forced to restructure, but neither firm could be reached for comment.

Also restructuring – possibly – is Petrobras. The Brazilian giant is widely reported to be considering selling a 25% stake in its fuel distribution arm, Distribuidora SA, through an initial public offering (IPO). The subsidiary is Latin America’s largest products distributor, producing nearly US$35 billion in revenue last year. If the share sale goes ahead, potentially shortly after World Bunkering goes to press, it would be the largest in Brazil for two years, with a value of between US$2.2 billion and nearly US$3 billion depending on valuation estimates. Petrobras itself has not put a date on the sale, nor confirmed whether it will go ahead, saying only that it was in discussions with banks over the deal.

©: Aerodigital

World Bunkering Special Edition 2015 29

South America

boats carrying NAFTA through Canal del Dique towards the centre of the country.”

Asked whether the soft oil market of the past year had affected the new development, Noero said: “[It] has inevitably put pressure on all the players in the industry, and Puerto Bahía is no exception.

However, when we decided to go ahead with this project, we thought of the long-term return of having a terminal with cutting-edge technology and specialised in the transport of fuels.

“Therefore, despite the fall in oil prices, Puerto Bahía continues to be a very competitive option for the import and export of fuels, because it was designed from the beginning as a public use, largescale facility, and the first of its kind in Colombia. Nowhere else in the country can a customer lease storage capacity for exclusive use and have control over its logistics and commercialisation process to such an extent.

“Besides, we visualised new opportunities,” he added. “One of our biggest projects is to connect our port with Refineria de Cartagena, Colombia’s main refinery, in order to strengthen our export capacity and to be more competitive as a country.”

“Additionally, Puerto Bahía’s infrastructure is connected by sea and by river, allowing for large-scale transport through both mediums and connecting the country’s main production centres with the rest of the world. This intermodal system allows for the storage, transport and transfer of shipments at a low price, alleviating costs for all oil producers, including those with a small production rate.

“It is also important to remember that Puerto Bahía does not only transport oil and fuels but also has a general cargo-handling facility for ro-ro merchandise, dry and general bulk goods. This terminal fulfills a dire need in Cartagena, since it is the first port in the region able to transport these types of shipments.”

On the subject of the port’s missing bunker facilities – which, given the size of its barge harbour, capable of a 60,000-barrel-per-day transfer capacity and designed to serve inland ports along the Canal del Dique, would be an obvious fit – Noero refused to be drawn on the chances of seeing them added in the foreseeable future. “As mentioned before, Puerto Bahía is planned as long-term project designed to adapt to the needs of the market,” he said. “For the time being, the port is optimally designed to meet current demands, which include a storage capacity of 3.3 million barrels, but has sufficient space available for future expansion. We focus our operation on our

Innovation

Norway goes GREEN Five pilot projects chosen for Green Coastal Shipping Programme

A

s shipping comes under ever greater pressure to reduce its CO2 footprint, despite being by far the most energy efficient form of transport, DNV GL has taken a lead in developing ‘green’ technologies. Now the classification society, 25 Norwegian companies and the country’s maritime authorities have chosen five pilot projects that will be pursued as part of Norway’s Green Coastal Shipping Programme.

The programme aims to encourage the research and implementation of green technology concepts in the country’s shipping sector.

The pilot projects include several different ship types, and infrastructure with an emphasis on alternative fuel concepts. “When we launched the Green Coastal Shipping Programme, we said we wanted to make Norway a world showcase for green coastal shipping. With these five pioneering pilot projects we are well on our way,” says programme director Narve Mjøs.

compounds (VOCs) in a shuttle tanker. Battery technology has not yet been used on this vessel type and the project will explore how it could potentially help to optimise operations and reduce the need for installed power. The project partners will also look at the possible use of batteries as a ‘spinning reserve’.

After assessing the economic and regulatory feasibility of batterypowered shuttle tankers, the project will review new technological solutions for using VOCs produced onboard by capturing and condensing the recoverable gases produced during offshore loading.

Using the liquid VOCs for onboard power generation could reduce total fuel consumption and the environmental impact of the vessel.

VOCs are generated during offshore loading and are an energy source that could potentially offer an environmental benefit in addition to reducing the total demand for fuel.

Hybrid ocean farming vessel

CargoFerry plug-in hybrid

The objective of the third pilot project is to define an optimised hybrid propulsion system for more energy-efficient operations with greater redundancy. The project owners are ABB and the Association of Cargo Freighters.

Conversion of cargo carrier into battery-hybrid LNG carrier

This project aims to develop a cost-efficient LNG distribution concept with a hybrid LNG/battery propulsion solution and zeroemission port operations. Converting an existing vessel may provide a cost-effective option for small LNG carriers. The project owners, Øytank Bunkerservice and the Norwegian Oil and Gas Association, will lead the way in developing the technical concept, calculating the environmental footprint and carrying out a cost/benefit analysis.

The first pilot project, CargoFerry plug-in hybrid, aims to develop a cost-effective and profitable short-sea containership that is powered by a plug-in hybrid liquefied natural gas (LNG)/battery propulsion system, offering a zero-emission solution. After developing the technical concept, the project partners will calculate the vessel’s environmental footprint and carry out a cost/benefit analysis. Shipping company Nor Lines will take the lead on this project.

Next-generation green shuttle tanker

Teekay Tankers will lead the second pilot project, which will investigate technical solutions for using batteries and volatile organic

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Green port project

The fifth pilot project has the objective of developing a lowenergy-consumption port with a minimal carbon footprint. Some of the technologies being employed to achieve this include electric heavy-duty vehicles and cranes. The green port will also be equipped with smart gates, offer cold ironing services and charging stations for plug-in hybrid ships.

Risavika Harbour in Stavanger will take the lead in the green port project, developing the technical concept, undertaking a cost/benefit analysis, calculating the environmental footprint and presenting a plan for further development of the concept.

World Bunkering Special Edition 2015

While US enforcement of emission regulations has received a lot of attention, the country’s authorities continue to crack down on illegal oil discharges

O

ver the years, the shipping industry has become used to reading about so-called ‘magic pipe’ prosecutions, where it has been alleged that the oil-water separator had been bypassed.

In July this year, however, a case was concluded that involved barrels of used lubricating oil going over the side.

It provided a reminder that US authorities still take oil, and also garbage, record book offences extremely seriously and will devote considerable effort to ensuring successful prosecutions.

Glasgow-based Norbulk Shipping UK, the operator of the Panama-flag reefer Murcia Carrier, was fined US$750,000 for failing to maintain an accurate oil record book in violation of the Act to Prevent Pollution from Ships (APPS) and providing false statements to the US Coast Guard concerning the vessel’s garbage record book.

The ship’s chief mate, 42-year-old Valerii Georgiev, pleaded guilty to the record book offence and was sentenced to three months’ imprisonment. The company pleaded guilty and was placed on probation for three years.

“Our oceans are life-giving and life-sustaining resources that our country and our world depend upon,” said John Cruden, assis-

tant attorney general for the Environment and Natural Resources Division, when the company was sentenced. “Ignoring perfectly legal and feasible ways to dispose of waste, the defendants chose instead to dump directly into the ocean. Today, the company will pay a price for this inexcusable and criminal act.”

“Illegal discharges at sea damage our environment and endanger those who work in and enjoy our coastal waters,” said Paul Fishman, US attorney for the District of New Jersey. “As we have shown before, shipping companies that engage in these criminal practices and deliberately discharge oil – and then lie about it to the Coast Guard – will be prosecuted.”

The US APPS requires vessels to maintain a record known as an oil record book in which all transfers and disposals of oil-contaminated waste, including the discharge overboard of such waste, must be fully and accurately recorded. Additionally, ships must maintain a record known as a garbage record book that fully and accurately records the discharge of all rubbish into the sea from the vessel.

On 27 April 2014, crew onboard the Murcia Carrier dumped overboard several barrels containing hydraulic oil, while on Georgiev’s watch. While Norbulk and Georgiev dispute the number of barrels dumped into the sea, the government believes The US Coast Guard has a zero-tolerance policy towards illegal oil discharges that about 20 barrels were dumped overboard.

This occurred in international waters off the coast of Florida while the vessel was in transit from Costa Rica to New Jersey. The dumping was not recorded in either the ship’s oil record book or garbage record book as required. In an effort to conceal the dumping, crew members presented a US Coast Guard boarding team with false oil and garbage record books when the vessel arrived in Gloucester, New Jersey.

“Marine environmental protection is one of the Coast Guard’s primary missions,” said Capt Benjamin Cooper, sector commander at Coast Guard Sector Delaware Bay. “The Coast Guard takes marine pollution seriously and we work cohesively with our partner agencies to hold those who violate international law accountable for their actions. We anticipate that the results © US Coast Guard photo by Petty Officer 2nd Class Mark Barney of this case will deter future brazen illegal oil discharges into the sea.”

World Bunkering Special Edition 2015 31

Legal

Lube oil dumping case

Legal

Low-sulphur fuel costs claim

Insurer International Transport Intermediaries Club (ITIC) has reported a case in which the owner of a chemical tanker made an unsuccessful claim against a port agent for costs incurred in taking on additional low-sulphur fuel at a European port.

As restrictions on the use of high-sulphur fuel proliferate, so does the scope for misunderstandings – and legal cases. This case, although not successful, shows the costs that can be involved when things go wrong.

ITIC cites a case where a port agent was appointed by the owners of a chemical tanker to attend the vessel in port. As the agent did not have an office at that particular port, it engaged its usual sub-agent to assist locally.

Prior to the vessel’s arrival, the master sent an email to the agent, asking whether there were any restrictions on the type of fuel that could be used while the vessel was both alongside and at the port’s outer roads. The agent passed this request to its sub-agent, who in turn made inquiries of the local harbour-master, who was responsible for enforcing the EU directive relating to the use of low-sulphur fuel.

The harbour-master confirmed that the vessel was required to burn low-sulphur marine gas oil from the time of its arrival at the port’s outer roads.

This advice was passed to the master, who duly followed these instructions. As the vessel waited at anchorage, it became clear to the master that he would not have sufficient low-sulphur fuel on board to complete operations and, as the vessel was unable to take on additional low-sulphur fuel at that port, the owners decided to divert to another port to replenish their supply.

The vessel thereafter returned to its intended discharge port and operations proceeded without further disruption.

The agent subsequently received a claim from the owners of the vessel for approximately $150,000. The owners alleged that the information provided to them by their agent was incorrect, and that the local regulations only required vessels to burn low-sulphur fuel while alongside the berth, and not at the anchorage. Because low-sulphur fuel was more expensive, the owners claimed for the additional costs incurred in burning this fuel when, they claimed, this was not necessary. They also claimed for the costs of diverting the vessel to take on the additional low-sulphur fuel.

It was established that the sub-agent had simply passed on the instructions received from the harbour-master, and that the agent had in turn passed this on, word for word, to the owners. Lawyers mounted a vigorous defence to the claim, which was subsequently withdrawn. ITIC covered the legal costs of defending the agent.

Bunker with confidence

S

ince its foundation in 2003, Mesos Ltd has accumulated the knowledge, experience, competence and skills required to provide quality bunkering and shipping services in the Russian far east. As an independent physical supplier, we aim to meet all our clients’ needs and conduct supply operations to the highest standards.

We provide a service to our customer that requires sophisticated logistical operations designed to meet their strict fuel quality and delivery scheduling needs. In the Russian far east bunker market, we are well known for our reliability, strict but well balanced work standards and extended data base for strategic partnerships.

Our team of highly experienced professionals applies a personal approach in dealing with clients, offering competitive rates and 24/7 service to satisfy customers’ requests.

The quality of supplied fuel to our customers’ fleet is the highest priority to our company. That is why we strictly monitor the whole process of delivery at every stage, from the depot storage facility, through transhipment and transportation, and, finally, to the client’s vessel.

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We supply fuel at the following ports in the Russian far east: Vanino, Kozmino, Vladivostok, Korsakov, Vostochniy, Nakhodka, Zarubino , Posyet and Slavyanka.

All supplied fuel is compliant with the Russian GOST standards and technical specifications and ISO8217:2012 in case of supply to a foreign vessel. We possess certificates of the highest quality from all the leading independent surveying companies.

Mesos Ltd takes its civil liability very seriously and is committed to the highest social and health and safety standards, providing

General director Alexei Peredera

appropriate work conditions for its employees and environmental protection.

We ensure a secure process when loading and unloading products and when undertaking other activities connected with ship maintenance and servicing. We also focus on environmental safety issues and prevention of oil spills.

The ompany joined IBIA in 2015 ⏏

MESOS Ltd Admiral Fokin Street 8/1B, Vladivostok, Primorskiy region, Russia 690091 Tel: +7 (423) 240-64-91 Fax: +7 (423) 240-66-98 E-mail: office@mesos.su Website: www.mesos.su

World Bunkering Special Edition 2015

Company news

Mesos Ltd

Tranzit-DV Group is celebrating its 20th birthday with new achievements

T

he 20th anniversary of Tranzit-DV Group is a good chance to look back and recollect our past achievements.

From its first days, the company developed rapidly, extending its geographic reach, setting ambitious goals for itself and achieving them.

Since 18 July 1995, Tranzit-DV has grown from a small shipping company operating chartered vessels to a holding company comprising 10 companies and having its own fleet with a total deadweight of over 200,000 tonnes. As a matter of principle, it works only under the Russian flag, and has an oil terminal that has seen the volume of transshipment of petroleum products rise to 2.5 million tonnes per year and more.

At present, Tranzit-DV Group is a holding company providing a wide range of services covering processing and supply of energy commodities, fleet bunkering and marine transportation. It is able to undertake any operations related to transshipment, storage and delivery of petroleum products and bulk

cargoes in any volume or direction through the use of its production facilities and highly skilled professionals.

Also, the work of the JSC Vostokbunker oil terminal in Slavyanka (another member of the holding company) was internationally recognised when it was named International Congress Oil Terminal 2009 and 2013.

The container terminal, also in Slavyanka port, enhances its capabilities with each new arrival of cargo. Today, Tranzit-DV is able to offer its customers the whole container port, plus specialist staff who will provide innovative logistics services for any transit containers: the containers are guaranteed to be delivered anywhere in the world “from door to door”, on time and with much care.

Tranzit-DV is also celebrating new achievements on its 20th birthday: this year saw the launch of a road transshipment complex, offering a crane vessel with a deadweight of 1,700 tonnes, which is able to lift the containers up to 36 metres and 50 tonnes.

This resolves the problem of handling of handling road cargo and is the first stage in the creation of a multimodal transport and logistics complex. When implemented, this project will allow millions of tonnes of commercial cargo manufactured in SouthEast China to be shipped via Slavyanka to consignees all around the world.

Igor Polchenko, president of Tranzit-DV Group, commented: “Russia is a maritime power with lots of ports and a long shoreline. It is also an oil-producing and oil-refining country. However, for a number of historical reasons, Russia was thrown into the background of international sea transportation traffic.

“Today, Russia’s prospects in the sphere of development of shipping and bunkering are bright. Tranzit-DV Group is contributing to Russia’s integration into the world economy, and we are proudly sailing under the Russian flag to make our country an international maritime power.” ⏏

Company news

Tranzit-DV Group

Vladivostok, Russia Tel: +742 3249 1199 E-mail: bunkers@tranzitdv.ru Singapore Tel: +65 6337 3341 +65 8518 6670 Seoul, Korea Tel: +82 2722 1123 +82 10 9690 6878 E-mail: lee@tranzitdv.ru E-mail: panchenko@tranzitdv.ru saenko@tranzitdv.ru Website: www.tranzitdv.com

World Bunkering Special Edition 2015 33

Company news

Port of Gibraltar Centre of Excellence for Marine Services The strategic location of Gibraltar explains why, for centuries, the Rock has been used as a naval fortress and why so many battles have been fought over this tiny peninsula at the entrance to the Mediterranean Sea. Today, this same quirk of geography has allowed Gibraltar to become a maritime centre of excellence.

Located at a crossroads of Mediterranean and Atlantic shipping lanes, Gibraltar is ideally placed to provide a wide range of services to vessels, ranging from bunkering, to crew changes, repair work or taking on supplies and stores, to vessels of all sizes and types, with minimal deviation from their transits.

Gibraltar is a bustling commercial centre.

With over 71,000 vessels transiting the Strait of Gibraltar each year, the Rock has become a major bunkering port – the largest in the Mediterranean – and offers a wide range of other shipping services.

The Gibraltar Port Authority (GPA) was established in 2005. Its strategy is to build on Gibraltar’s unique geographical position and provide a vital link between all shipping stakeholders in order to deliver the best possible service to visiting ships, in a safe and efficient operating environment.

As part of delivering this core function, GPA manages safety of navigation, as well as regulating the various activities that are carried out in its waters. Notable among these is the regulation of the bunkering industry, for which Gibraltar attracts international recognition for its best practice. The vision for the future builds on this success, and extends this level of partnership and transparency to all sectors of the industry at the port.

GPA currently employs over 50 staff, and its main functions are: • Monitoring and control of all vessel movements within British Gibraltar Territorial Waters (BGTW) in support of port operations and navigational safety; • Provision and monitoring of port security, including security measures within restricted and controlled zones; • The licensing of port operations; • Search and rescue in BGTW; • Pollution prevention and response; • Monitoring and control of ship-to-ship and bunkering operations within BGTW. Gibraltar is one of the largest bunkering ports in the world, and its suppliers continue to go from strength to strength. Bunkering at Gibraltar has grown tremendously since the modest volumes handled in the 1980s, with rapid growth leading to Gibraltar becoming the premier bunker destination in the Mediterranean. Its privileged strategic position at one of the major crossroads of the international shipping trade routes has certainly been key in establishing the market presence. But this is not the only contributing factor to the continued success of Gibraltar as a bunker port.

GPA is the primary regulator of the bunkering industry at the port.

In partnership with local bunker suppliers, it has created what is widely recognised internationally as an excellent management process of the entire bunker supply chain. The Gibraltar Bunkering Code of Practice is acknowledged as a leading exemplar of the way bunkering should be regulated. Testament of this recognition is the fact that IBIA holds up Gibraltar, together with Singapore and

Rotterdam, as the standard to which other ports worldwide should aspire.

GPA also takes its environmental responsibilities very seriously, and continually invests in its capabilities. The port follows the relevant international and local legislation on environmental issues and is a member of the GreenPort association, offering discounts to ships conforming to certain environmental standards. It also offers waste reception facilities to discourage ships from dumping waste at sea. Gibraltar is also an associate member of Oil Spill Response Limited (OSRL) of Southampton.

As a cruise destination, Gibraltar has it all: location, facilities, unrivalled levels of service and an abundance of attractions, and its popularity is growing all the time.

In 2014, Carnival UK declared Gibraltar its third most popular port of call, after Southampton, its base port, and Lisbon.

With its prime location at the southern tip of Europe, guarding the gateway to the Mediterranean, Gibraltar is an ideal port of call for cruiseships whose itineraries include the transit of the Strait of Gibraltar.

In 2014, a total of 180 calls brought almost 300,000 passengers ashore to the Rock. As a destination, Gibraltar offers easy access into town, plentiful tourist attractions, a wealth of natural and military history, plus striking geography – it is clear to see why Gibraltar is so popular.

Lastly, Gibraltar is becoming increasingly popular as a port of call for superyachts.

Able to host the largest of these prestigious vessels, GPA is working closely with the private sector with a view to developing the infrastructure demanded by this discerning customer base.

In the shorter term, over 400m of new berthing space, with a depth of 8m, will soon become available as a new governmentsponsored small boat marina project comes to fruition. ⏏

Tel: +350 200 46254 Ext. 1001 Fax: +350 200 51513 E-mail: gpaenquiries@port.gov.gi Web: www.gibraltarport.com Port Office North Mole PO Box 1179 Gibraltar GX11 1AA

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World Bunkering Special Edition 2015

Your bunkering solution in TURKEY

F

ORS IKIZLER DENIZCILIK has been operating in the marine sector since its establishment in 1997. Through its bunker department, FORCE BUNKER, which was established in 1999, it has accumulated the experience, knowledge and qualifications to provide highquality bunkering services.

It is the registered dealer and barge operator of the State Oil Company of Azerbaijan Republic (SOCAR) and is licensed by the Energy Market Regulatory Authority (EMRA) to operate in Turkey – mainly in Istanbul, Marmara and Iskenderun Bay – and as a trader worldwide.

SOCAR is the only physical supplier in the region and now has bunkers-only status, allowing us to serve our customers more efficiently in Iskenderun Bay. Force Bunker can deliver MGO (DMA) max. 0.1% sulphur and a full range of high-sulphur fuel oil, as well as lubmarine lubricants. All fuels comply with Regulation 14 and 18 of Annex VI of MARPOL 73/78.

Our highly qualified professionals apply a personal approach in dealing with clients, offering competitive rates and 24/7 service with Force Bunker’s unwavering aim of “best quality, lowest price”.

With quality always a top priority, our company supplies products that comply with International Organization for Standardization (ISO) quality standards.

Force Bunker is also a proud member of the International Bunker Industry Association (IBIA).

In the past two years, we have made a number of major investments at Force Bunker in order to grow our fleet.

Our last acquisition in November 2014 took our fleet to four bunker barges, all of which operate under Force Bunker’s ownership: M/T FORCE 1 (1.326 DWT, IFO&MGO) M/T FORCE 2 (493 DWT, MGO) M/T FORCE 3 (1.723 DWT, IFO&MGO) M/T FORCE 4 (861 DWT, IFO&MGO) From our long experience of ship operations, Force Bunker is aware of the importance of supplying quality fuel on time. To ensure this, two larger bunker barges will be added to our fleet at the beginning of 2016. These sisterships will be the largest in our fleet.

Force Bunker is fully aware of its responsibilities and is committed to complying with the highest social, health and safety standards, providing good working

conditions for employees and protecting the environment.

In addition to our bunkering operations, FORS IKIZLER DENIZCILIK is very pleased to assist its customers with any other marine requirements they may have. These include: • Transit and port agency service in Turkey • Lubrication oil supply • Fresh water, provisions, paint and technical supplies – in the Istanbul anchorage area, for transit passages, and at all Turkish ports • Technical services for any kind of repair • Sludge/slop collection.

• Diving support • Crew change • Motor boat and car service • Delivery services (cash to master, spares, mail and store items)

Company news

FORCE BUNKER

Force Bunker Salacak Mah. Bestekar Selahattin Pınar Sok. no: 112, 34668 USKUDAR- ISTANBUL /TURKEY Tel: +90 216 492 53 33 (pbx) Fax: +90 216 391 57 75 Email: forcebunker@ forceshipping.com Web: www.forcebunker.com : Force Bunker : Force Bunker : Force Bunker

World Bunkering Special Edition 2015 35

Diary

03-06 November 2015 EUROPORT – ROTTERDAM Europort has a strong focus on special purpose ships including offshore vessels, dredging vessels, construction vessels, naval vessels, workboats, inland vessels, fishery vessels and super yachts.

www.europort.nl

08 February 2016 IBIA ANNUAL DINNER Peter Hall, CEO of IBIA said: ”It is great to be taking our dinner back to the Grosvenor House Hotel, it is like taking the event home!"

www.ibia.net

11-12 November 2015 ARCTIC SHIPPING – LONDON ACI’s 7th Arctic Shipping Summit 2015 will focus on discussing the practical solutions necessary for the ship owners to decide whether they should invest in utilising the Northern Sea Route.

The meeting will provide updates on key developments and regulations in the Arctic, as well as present expert views on possible future advances in governing the transport routes.

24-25 February 2016 SMM – ISTANBUL SMM Istanbul will once again provide a stage for numerous highly respected national and international speakers..

www.smm-istanbul.com/

www.wplgroup.com/aci/event/7th-arctic-shipping-summit/

25-26 November 2015 PLATTS 4TH ANNUAL MEDITERRANEAN BUNKER FUEL CONFERENCE – BARCELONA Platts Mediterranean Bunker Fuel Conference will assemble the region’s leading bunker fuel suppliers, traders, brokers, refiners, ship operators, owners, and other marine fuel industry organizations to discuss the changing landscape of the region.

www.platts.com

01-04 December 2015 MARINTEC CHINA – SHANGHAI With increasing worldwide recognition and reputation throughout the past three decades, the exhibition is attracting an increasing number of high-profile exhibitors and visitors from around the world.

www.marintecchina.com

02-03 December 2015 TRANSPORT SECURITY – LONDON

14-17 March 2016 BREAKBULK CHINA – SHANGHAI Breakbulk China’s targeted programming will ensure that you develop skills and strategy to help you do your job more effectively.

www.breakbulk.com/events/breakbulk-china/breakbulkchina-2016/

16-18 March 2016 ASIA PACIFIC MARITIME – SINGAPORE Meet 15,000 decision makers, shipowners, shipbuilders and other key players from the maritime and offshore community in 3 days.

www.apmaritime.com

21-23 March 2016 CMA – STAMFORD

Now in its 13th edition, Transport Security Expo (Transec) has become the main global platform bringing Government, Industry & Academia together to counter the threat against our transportation networks.

How often have you heard the phrase "My Word is my Bond"?

In a recent lunchtime conversation with a friend and customer we surmised that we heard it lot less in recent years, a trend which, we concluded was deleterious to the maritime industry as a whole.

www.transec.com

www.cmaconnect.com

09-10 December 2015 SE ASIA LNG CONFERENCE – KUALA LUMPAR

23-24 March 2016 ARCTIC SHIPPING – MONTREAL

Present your company against your target market, Instead of just attending an event and looking for people to share your business card with, sponsorship brings attendees who are eager to find out about your business directly to you.

We will be deeply exploring new developments and regulations that will come into action for the Arctic Shipping indusrty.

Combining expert views, govermental officals and industry service providers to expand and increase effiency & knowledge for new generation shipping and operations.

www.lngsea-niec.com

www.wplgroup.com/aci/event/arctic-shipping-summit/

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World Bunkering Special Edition 2014

For groundbreaking fuels, follow the leader.

To help manage the costs, risks and complexity of ECA compliance, we’ve added revolutionary new fuels — ExxonMobil Premium HDME 50 and AFME 200 — to our MGO offering. These high-viscosity, low-sulfur, OEM-approved fuels are formulated to help: • Provide quick, safe switchovers • Minimize risk of shutdowns and thermal shock • Reduce operational complexity One more way ExxonMobil moves the marine industry forward.

Learn more at exxonmobil.com/ecafuels

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